Archive for tag Current housing market
January 06, 2012 at 12:00 AM · Posted under Glenn Hanon
A few months ago, I was honored to be featured as the first agent of the month for a national blog "Keeping Current Matters." As a fellow blogger, I have always been highly impressed with the KCM team and their up to date analysis of the real estate market. What I appreciate most about their blog is that the KCM team is intent on providing accurate analysis of trends, developments and the voluminous data that permeates the media with respect to real estate. Steve Harney, the founder of the blog, and a guy I can really relate to says, "It isn't good news and it isn't bad news it's just news." This really sums up part of their approach.
The other little know factoid that the public may not know about is that the KCM team really cares about neighborhoods. As Realtors, we are on the front lines of the ever changing market and it is up to us to help everyone we meet to make the best possible decision when it comes to selling their home. It is the only way we really are going to pull, kick and drag our way out of the mire. So kudos to you KCM for your commitment to real estate and each seller who needs an expert to navigate the turbulent real estate waters.
Posted by: 
Glenn Hanon
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January 03, 2012 at 06:10 PM · Posted under Area Attractions & Events, Glenn Hanon, Market Stats
As of today interest rates on a 30 year mortgage with no points is hovering around 3.875%. You may wonder if that is a good rate. Revisiting the past can shed some light on this question. If we look back 10 years it was January 2002. We had just lived through the horrific events of 9/11 and real estate sales were reeling from the trauma of that awful autumn.
Interest rates at that time were at 7.375% with no points! At the time this was a great interest rate. To put this into perspective, let's look at the difference in payments from 2002 to 2012.
For a $200,000 mortgage the payment in 2002 would have been $1,381.35 amortized over 30 years.
In 2012, that same mortgage amount with today's low interest rates is $940.47-- a savings of $440.88. But here is where the power of the interest rates gets very interesting.
Let's assume that one can easily afford the $1,381.35 payment of 2002, what does that do to the amount borrowed? The payment with the lower interest rate now allows the same buyer a mortgage amount of $293,700. The lower interest rates allow you to purchase a bigger home for the same price.
If you are thinking about upgrading your home now is an opportune time to take full advantage of the low market rates.
Posted by: Glenn Hanon
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December 27, 2011 at 12:00 AM · Posted under Glenn Hanon
Difficult times cause some people to take drastic action without thinking. If you are in the midst of a very tough real estate scenario, I want to encourage you to think before you act. I am referring to a sale of a home where the seller, due to some very difficult circumstances, found himself in a short sale which quickly turned to a bankruptcy. The large home had many fine accoutrements, most notably the high end kitchen. The owner, thinking these “fixtures” were his to do as he pleased, (they were not) decided to sell the Sub-Zero refrigerator, Wolf ovens, cooktop etc., you get the picture of what happened. Light fixtures were sold, under cabinet lighting, in-ceiling speakers, a fireplace and the list goes on. In essence, the homeowner stripped the house. This warning is for sellers and would be buyers on internet resale sites. These items could be considered “stolen goods.” The penalty for a homeowner is severe.
The bank in this case decided to pursue criminal proceedings against the past homeowner—Grand Larceny, a fine punishable up to 10 years in prison and a $25,000 monetary fine. Buyers of these stolen goods can be tracked down as well. If you thought the deal on the gas cooktop was too good to be true, it may have been. Buyer beware is often the rule of thumb for these types of sales. As a buyer, if you think the property is stolen, you could be in violation of Wisconsin Stats 943.34, which is a felony depending of the value of the stolen items. If you know someone who is going through a tough time please encourage them not to take this course of action. It is in their family’s best interest to think before they sell. Families face real devastation with the loss of a home, but prison time should not be part of the equation. Let’s all help those we care about most to do the right thing.
Posted by: Glenn Hanon
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December 21, 2011 at 05:43 AM · Posted under Glenn Hanon
The end of the year is always a great time to look back at past achievements and milestones. Here are a few that I thought are significant.
Q: How many unique visitors have clicked on Shorewest.com?
A: 2.6 million or 50,000 per day!
Q: The public will hear that home sales have increased 20-25% in 2011. What percentage sold under $300,000 in 2011 in the Lake Country Area?
A: 70%
Q: How many HOTLINE calls has Shorewest received this year on our listings?
A: 6,500
Q: What is the percent increase of a home in the LC area since 2000?
A: 30%
Q: What percentage have homes decreased in LC since the peak?
A: 21%
Q: What is the consensus of the expert economist’s opinion as to where home prices will be in the first quarter of 2012?
A: Down 5%-7%
Q: Who is the local Expert in Real Estate in the LC area?
A: Glenn Hanon—I know I couldn’t resist, but it is true!
2012 holds some unique opportunities in Real Estate, despite the predictions. If you are looking for solid expert advice feel free to give me a call. Have a wonderful Christmas and a safe New Year! Go Pack Go!!
Posted by: Glenn Hanon
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November 15, 2011 at 06:12 PM · Posted under Glenn Hanon, Market Stats
Sometimes the more you say something the more you believe it to be true. If numbers don’t lie then let’s take a look at what actually happens year after year. From the graph you can see that the inventory levels swell significantly each spring, however the level of sales does not increase as much as the new inventory level leaving a large gap between sales and new inventory. The closer we can get the new inventory level and the current sales level to meet we have a very healthy market. Year in and year out the same trend persists. Several questions come to mind with this trend and there are two groups of people that can take advantage of this information—sellers and buyers.
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Let me explain. If I were a serious seller I would rather be on the market when there are fewer homes on the market. If I am priced correctly, regardless of market, my home will sell. Here comes the tricky part. A good deal of the “swollen” inventory is from sellers who are thinking about selling but are not serious about correct pricing and thus their price is generally higher than the market. This is why they wait until spring to list their home. They are more fickle than committed sellers. If I have to compete with these folks then it is incumbent on me to be very accurate. Later on in the year, when most sellers think the market is bad we actually see just the opposite. The level of sales reaches to the level of inventory—a very good thing, and as a seller the fewer homes I have to compete with is always better.
Does this benefit a buyer? Wouldn’t I want more homes to compare to than fewer? Yes and No. Let me address the yes first. As a serious buyer do you want to spend time looking a wide variety of homes that are not realistically priced with sellers who will not sell them for the true market value? Probably not. And as a buyer would you rather compete with 5 other buyers or 15 for the inventory? Today’s buyer, just like the seller, does not want to compete with a surging supply of buyers.
From my experience of selling homes for the past 24 years, I can say with accuracy that most of my January’s are better than my July’s! In July school is out, the family is off on a vacation and house shopping is for another day. In January serious buyers are out looking at homes. If I were a seller I would rather sell my home in the “off-season” than in July when everyone is off for the season.
Now the numbers bear out what we have experienced for the last few decades. If you are serious about selling your home there is no better time than now.
Posted by: Glenn Hanon
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October 26, 2011 at 12:39 PM · Posted under Glenn Hanon
There is no doubt that the burst housing bubble continues to have a dramatic effect on the real estate market. Wisconsin and more closely, Waukesha County feel the devastating consequences of the foreclosure market. Waukesha County Sheriff’s department has processes about 50 sheriff sales per month. The pace is the same as in 2010. However the notices of foreclosure action filed with the department year to date equal 1,258 new cases! 125 new notices of future foreclosures are filed with the sheriff’s department each and every month. This coupled with the short sales have created an interesting toxic brew in the real estate industry. Now, let’s pull the numbers apart.
The chart to the right shows the average sales price of homes from 2000 to 2011 based on MLS statistics in the greater Lake Country area. If you purchased your home in 2000 for $262, 515 and your home is now worth $344,418 and you put 20% down on your home your new equity for your home is $82,000 or a 56% return on your initial investment (ROI). Yes, your home is worth much less than the peak in 2006 but your ROI is an astounding 56%! How did the S&P do for the same period? According to MSNMoney.com, the S&P is down 19% from January 2000 to October 1, 2011. So why do we have all the distress? Many used their home as a piggy bank during the run-up in prices and re-leveraged their home to the 2004 or 2005 prices. Their home was a good investment but the misuse of the investment has left some upside down which in the end has adversely affected current pricing. The level of incoming foreclosure action comes down to an important point: The oversupply of inventory will remain for some time. If you are selling now it would be wise to price your home compellingly.
Posted by: Glenn Hanon
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